Forever 21 is considering filing for bankruptcy, according to reports from Bloomberg and CNBC. The retailer’s efforts to restructure its debts and improve liquidity have allegedly stalled, which makes the proceedings more likely.
Forever 21 did not immediately respond to requests for comment. The fashion retailer currently operates 815 stores globally, with many in malls. This has been a particularly vulnerable area for retailers, and the company would likely emerge from a bankruptcy with a smaller store footprint.
The retailer hired restructuring advisers in June to help negotiate store leases and overhaul the business to help avoid bankruptcy. The chain also could receive assistance from Simon Property Group, which told analysts in July that it would consider infusing capital into struggling retailers to guarantee they would keep stores open.
Retail TouchPoints will update this story as more details are confirmed.
- Fred’s Files For Chapter 11, Plans To Close All Stores Within 60 Days
- Sugarfina Files For Chapter 11, Prepares For Bankruptcy Auction
- Charming Charlie Puts Brands And Web Sites On Auction Block
- A’gaci Shutters E-Commerce Site, Will Liquidate All Stores In Second Bankruptcy
- Barneys New York Files For Bankruptcy, Will Close 15 Stores And Seek Buyer